Limited but firm buyer interest developed in live cattle trade Monday. This moved several contracts to new contract highs, creating expected additional support early Tuesday.
Cattle: Steady Futures: Higher Live Equiv: $143.63 -0.60*
Hogs: Steady to $1 Lower Futures: Lower Lean Equiv: $ 69.32 -0.39**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Cash cattle activity continues to remain elusive early in the week with show lists generally smaller for the week and packers expected to remain short bought through the month of February. The adverse weather conditions seen over the last three weeks is expected to have significantly reduced overall rates of gain in many of the feedlot cattle. This is likely delaying the ability for these cattle to become ready for market by one to two weeks.
Bids and asking prices are not expected to be seen through the morning, allowing for most trade to likely be pushed off until late in the week. Futures trade is expected firm Tuesday morning with follow-through buying developing. There is the potential for limited position taking to develop as traders try to adjust following reaching contract highs in most nearby contract months.